FOREX News and Updates Today:
Attention to the ruble before the meeting the Fed Open Market Committee 's understandable. After those setbacks that awaited Russian currency at the end of the week to Jan. 24 , the decision to reduce the scale of quantitative easing could aggravate the situation and lead to further devaluation of the "wooden ".
Cheap liquidity outflows from emerging markets is the main driver of the fall in exchange rates of these countries. Ruble - not the exception but rather the rule , because the stories with the Argentine peso and the Turkish lira widely known. The devaluation of the currency of the South American country is about 17% and is due to not only the expectations of the Fed's decision , but also the sovereign actions of the Central Bank , has decided to give up the addiction to sell gold reserves to maintain the peso and liberalize the mode of operation of the foreign exchange market .
Does not that very similar to the situation in Russia , where the central bank also eased his grip , less and less participation in the process of exchange rate appreciation. However, such a serious weakening of the "wooden ", apparently , is not included in the plans of the domestic regulator, which began to take action after speculators began to test the upper limit of the bi-currency corridor. An estimated three times the Bank of Russia for January 27 engage in , spending to support the ruble about $ 1 billion
Watching so much opposition from the Central Bank to purchase Connect exporters wishing to implement the rescue at a favorable rate , resulting in a pair of USD/RUB and EUR/RUB entered a small correction. Here, the Bank of Russia is not alone : for example , the Turkish regulator also actively prevents weakening of the lira , which could trigger an increase in inflationary expectations and rising prices .
Technically quotation USD/RUB come to an important resistance level , without overcoming the continuation of the uptrend which is impossible.
On the daily chart interact synchronously subsidiary , highlighted in blue , and maternal labeled red model. The significance of the current resistance level is confirmed by the presence of targets for both patterns. So as the target with the first serves mark of 34.75 ( 261.8 %) , the second - 34.78 ( 161.8 %). In case of a breakthrough initiated likely the Fed decision on decommissioning U.S. QE, buyers are quite capable to move up towards 36.1 . In any case, while a pair of quotes are above $ 33.9 ( 161.8 % by the subsidiary AB = CD), the mood remains " bullish ", which creates opportunities for long positions on pullbacks.
